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Intra-National Trade as Channels of Spillovers in Developing Countries

Author

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  • He, Yong

    (Université Clermont-Auvergne)

Abstract

We developed a model to explore the comparative advantage based intra-national trade in developing countries, as a contrast to models driven by increasing returns and agglomeration that prevail in the developed world. The model incorporates technological spillovers and trade. The findings suggest that the intra-national trade share of a region is inversely proportional to its technological level, and that economic growth diffuses along the intra-national trade network from the developed country, through the advanced regions of the developing country, into its less developed regions. Internal trade costs exert a multiplied hindering effect, stronger than that of border barriers, on national growth. The statistics derived from China’s 2007 provincial input-output tables provide evidence in favor of the main theoretical findings.

Suggested Citation

  • He, Yong, 2017. "Intra-National Trade as Channels of Spillovers in Developing Countries," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 32(2), pages 358-399.
  • Handle: RePEc:ris:integr:0715
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    Citations

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    Cited by:

    1. Yong He, 2019. "An Empirical Test on Regional Spillovers through Intra-and Inter-national Trade," Post-Print hal-03185078, HAL.
    2. He, Yong, 2018. "An Empirical Test on Regional Spillovers through Intra- and International Trade," MPRA Paper 88780, University Library of Munich, Germany.

    More about this item

    Keywords

    Comparative Advantage-based Intra-national Trade; Intra-national Spillovers; Regional Input-output Tables; Regional Disparity; Endogenous Growth Model;
    All these keywords.

    JEL classification:

    • F01 - International Economics - - General - - - Global Outlook
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General

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